These fifty grand loans

Personal Service Company - typically a one-person Ltd company...
A lot of IT contractors do (or did until IR35 came blundering along) used PSC's as a vehicle to contract their services to customers. Pay small salary and take large dividends - more tax efficient.
I know, i was one until the beginning of this month.

Still - this loan offer does sound intriguing

By winding up do you mean going bankrupt? If so, surely you wouldn't be allowed to be a powerfully built director again

I've heard the £50k cap is either 25% of turnover, or 2x PAYE salaries, whichever is greater.

Hope that’s the case, means I can get (well apply for) the full 50k

I wish they had done it for £100k.

I would have restructured my borrowings.

Not sure if it is worth me borrowing another £50k. Problem is it disappears and you are left with £1000 a month going out.

I presume they would check whether the company traded other than the loan and, if it did, whether the margins were appropriate, plus whether they transferred contracts to the new company to deliberately avoid the debt.

Where does it say you can’t pay off other debt? And how would they even know or stop it.

I intend to do this as it’ll massively improve my cash flow and help me not to run out of money and go bust losing people jobs and negatively affecting my suppliers.

Which is what I though the whole idea of the loans were, to help businesses bounce back and not go bust.

I’m applying Monday either way.

You mean winners as in 'their profits will be absolutely terrible if they are part of the scheme and even worse if they aren't ?'

Shares in Lloyd's are pretty much priced for failure. The market cap is less than half the balance sheet net asset value and, at just over £20bn, is only a little over the £19bn Lloyds paid out in PPI claims ! (at least half of which were probably paid out to claimants with dubious claims but the bank rolled over to HMG pressure and just paid out).

HMG also made a tidy profit on the Lloyds shares they owned for a while. Which was mainly as a result of taking an equity stake after Lloyds was effectively arm twisted into taking on the shocking liabilities of HBOS. Before that Lloyd's had been well capitalised and a cautious bank that wouldn't have needed any sort of bailout.

Shareholders in Lloyd's have had a miserable 12 years. 90+% share value erosion and almost no dividends. These people who whinge on about "we bailed out the banks" - well it certainly wasn't for the benefit of the owners of those banks !

Finger in air, but even if the govt are underwriting the risk - so no credit risk; the associated resource costs for the banks to lend are a minimum 140bps. That's made up of liquidity and leverage ratio costs. That also assumes some form of bank levy netting. If they can package them off book, that comes down a bit (45bps assuming 3% leverage ratio).

Banking is far from a free resource that many think it is, I had oversight of the numbers from our retail bank (pre separation back in the day), and taking deposits cost 14bps in operational cost alone. Administration of a loan book, would cost a bit more.

At 2-2.5% p.a. the banks wouldn't be creaming it, but should be making a fair turn.

Lloyds was a cautious bank!